Mr. Hobbes of California, for himself, Mr. Cross of Mississippi, Mr. Parkerson of Pennsylvania, Mr. Galt of California, Mr. Wilt of Tennessee and Mr. Cienciolo of Ohio, Mr. Laverone of California, Mr. Williams of Virginia, and Mr. Jackson of Washington State, submit

AN ACT

To radically reform the Social Security system.

Finding of Fact

1) The United States financial markets have never suffered a net loss over a single ten-year period, even when our grand old republic was in the throes of the Great Depression.

2) As it stands now, Social Security alone makes up $498.8 billion of the $3.27 trillion dollar federal budget for the year 2004

3) In an October, 2003 poll conducted by the CNN/USA Today/Gallup organizations, sixty-percent of the country favored �A proposal has been made that would allow people to put a portion of their Social Security payroll taxes into personal retirement accounts that would be invested in private stocks and bonds.�

Section I: Authorization

1) The United States Congress authorizes the creation of the Office of Social Security Investment, a branch of the United States Treasury Department, answerable directly to the Secretary of the Treasury.

2) The Office of Social Security Investment is given the task of assembling and constantly updating the establishment of a government-held Social Security portfolio, which will invest broadly across the bond, futures, and stock markets on a meticulous percentage basis that the Office believes will best serve to bring in positive net earnings for investors.

3) The annual budget for the Office of Social Security Investment shall be two and one half million dollars.

4) The Social Security Administration is authorized to, for the 2006 fiscal year, offer workers the opportunity to invest portions of their payroll taxes into a government-held account spanning the bond, futures, and stock markets.

a) For workers between the ages of 65 to 70, the Social Security Administration will allow five percent of payroll taxes to be diverted to the government-held account.
B) For workers between the ages of 55 to 64, the Social Security Administration will allow fifteen percent of payroll taxes to be diverted to the government-held account.
c) For workers between the ages of 45 to 54, the Social Security Administration will allow twenty-five percent of payroll taxes to be diverted to the government-held account.
d) For workers between the ages of 35 to 44, the Social Security Administration will allow forty percent of payroll taxes to be diverted to the government-held account.
e) For workers between the ages of 18 to 34, the Social Security Administration will allow fifty percent of payroll taxes to be diverted to the government-held account.
f) These percentages must be adjusted every five years by an act of the United States Congress.

Section II: Enactment

1) This legislation will be enacted January 1, 2006, after its passage through the United States Congress and the signature of the President of the United States.

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